Jan.26--Cosco Shipping Development Co has projected a profit for the financial year ended 31 December 2016, emerging from the loss registered in 2015.
The leasing businesses and ship financing arm of China Cosco Shipping Corporation Limited (Cosco Shipping) announced that net profit attributable to shareholders of the company for 2016 is expected at no less than RMB150m ($21.8m), erasing the loss of RMB2.95bn in 2015.
The projected profit, however, has been significantly trimmed by a RMB478.81m provision made for asset impairment. In particular, the bankruptcy of South Korea's Hanjin Shipping led to provisions for impairment for accounts receivable, long term receivable and container assets linked to business transactions with Hanjin Shipping.
Cosco Shipping Development, previously called China Shipping Container Lines (CSCL), has been developing and integrating various financial service businesses since its transformation from being a container liner operator.
The company said the business changes have contributed to the increase in overall profitability in 2016.
“Pursuant to the restructuring, the company has disposed of certain loss-making container shipping businesses and has been transformed into an integrated financial services platform,” Cosco Shipping Development said.
Source:seatrade-maritime.com